Thank you for being here and taking the time to read the Q2 update.
Q2 was very busy and a lot of focus was given to R&D and planning our future expansion. As a result of this, we have pushed into new businesses and expanded the scope of many of our projects. Although this has resulted in some delays, we believe it will help us expand more aggressively.
We are now able to reveal some new deadlines that we believe will be easier to meet while several product releases from the update in Q1 will be released in early Q3.
Let us recap the Q1 Update and highlight the changes and why several products have been delayed.
Before we start:
In the Q1 update we’ve talked about the 4 phases of QAE (Qredit Always Evolving).
The 4 phases are:
- Qredit Motion
- Qredit Wave
- Qredit KYC
- Qredit Smart Contracts
Our goal was to release the 4 phases in this chronological order, but due to changes in research and marketing plans, we have decided to turn it around and start the phases from the bottom.
During the development and integration of these phases, we have realized that there are more potential use-cases and we could add more functionality to Qredit to effectively address the new use-cases.
Let’s start with Qredit Smart Contracts.
In the Q1 update, we explained that there was a possibility to work together with Openledger ApS. We have taken a lead role and decided to build the smart contracts platform from the ground up without any other 3rd parties.
During our research, we have decided that Qredit Smart Contracts will not be a product without customers. Therefore we have participated in several blockchain meetups and have spoken to companies that were looking for blockchain solutions for their products.
The meetings have concluded that Qredit should provide a bit more than a smart contracts platform that allows end-users to create simple and transferable tokens on the Qredit blockchain.
The official code name for our smart contract platform was meant to be ‘QAE’, which was already in development. Last month we decided to add more features and create several protocols on the same blockchain, starting with QAE-1, following with QAE-2 and QAE-3.
QAE-1 is a basic smart contract protocol on the Qredit blockchain that allows end-users to create tokens that can be used to store small amounts of data or to trade tokens with other users.
QAE-2 is a protocol that allows users to create tokens with advanced meta-data attributes.
The difference here is that you can create tokens with the same ID but with different characteristics or data. In other words, you can trade these tokens with each other but one token could contain different information that represents a different value.
Details of QAE-3 are currently restricted to potential partners and clients and will be released in future updates.
In the Q1 update, we have announced that the release of QAE Smart Contracts platform would happen within 6 months.
Here are the actual public release dates.
QAE-1 Smart Contracts: End of August 2019
QAE-2 Smart Contracts: End of 2019
QAE-3 Smart Contracts: Public release to be announced.
To further clarify this phase of development.
QAE-1 tokens can already be queried on this page: https://www.altilly.com/page/qaerestapi
As you can see, QAE-1 is already active on the Qredit blockchain.
We are now building the interface inside the Qredit Portals where you can issue, withdraw and send your own QAE-1 token.
After the release of QAE-1, we will start directly with the development of QAE-2 and QAE-3 using QAE-VM’s (Qredit Always Evolving Virtual Machines).
Since we are talking about all these Smart Contract protocols, do we actually already have customers for it to use our products?
Yes we do! As explained above, without customers, there is no product!
For QAE-1, we have a project (formerly) called SolarDAO. The SolarDAO project was a project that started in mid-2017 to build crowdfunded solar factories. It was recently declared bankrupt. To make a long story short Hodler Enterprises decided to acquire the project, and rebrand it as Antares Energy and build it on top of our own blockchain ecosystem.
This project will use its own QAE-1 token and will allow token holders to receive payouts in the form of Qredit coins.
The second project is Hodler Energy (also owned by us) that delivers immersion cooling FPGA mining and green use of the produced heat. Likewise, it will utlize its own QAE-1 token and will payout mining rewards to Hodler Energy token holders.
On to use-cases of QAE-2. The idea of building QAE-2 started since we have been in contact with several companies in the commerce and satellite solar research sectors. Planet4Us is a Swedish company that is planning to utilize the QAE-2 in their own project. They have been looking for a blockchain that can meet their demands and QAE-2 is the exact product that they are looking for. Around the end of summer 2019, we will be able to verify the partnership between Hodler Enterprises and Planet4Us.
More information about Planet4Us can be seen here: https://planet4us.com
The second company that is going to use QAE-2 is an Australian company that builds satellites to monitor solar activity.
They are going to store collected data on our blockchain using QAE-2 protocol and alternatively allow students and researchers to pay for contracts that give them access to their satellites to query more data using API’s through our blockchain.
QAE-3 will be used for a logistics company that we cannot reveal at this time. Further details will remain private for now.
After we are in a further stage with these companies setting up their projects on our Smart Contracts platform and fine-tune our own products, we will start the marketing phase for QAE.
As you have noticed above, we talked about Qredit Portals.
A term that has never been used before in our updates. Since Qredit Wallets will be offering more than just transferring assets, we have decided that the term ‘wallet’ no longer makes sense. The Qredit Desktop Wallet, Qredit Mobile Wallet and Qredit Web Wallet will be named in the future as Qredit Desktop Portal, Qredit Mobile Portal and Qredit Web Portal. The rebranding of this name will occur in the month of July during the release of the latest core version.
Now that we explained the Smart Contracts platform, let us hop directly on to the other phases of Qredit.
As Hodler Enterprises owns the Altilly Exchange, we have been talking about introducing KYC to large trading members. Since Qredit KYC and the KYC for Altilly are being provided by the same partner called Token of Trust, it wouldn’t make much sense to create 2 different products sharing the same characteristics. Therefore, Qredit KYC will no longer exist as the name Qredit KYC but has been rebranded to AltillyPass, which will be further explained in the update about Altilly.
The development of Qredit Wave and Qredit Motion is currently on a back-burner as the team’s main focus is on the implementation of the significantly increased scope of QAE Smart Contracts protocols.
We plan to start adding development cycles into Qredit Wave and Qredit Motion from the beginning of Q3 during the integration of Qredit in local stores. More about the local stores is explained further in this update. To avoid confusion about the phases of QAE, we will skip the ‘phases’ part from future updates and just name the products by their names.
In the Q1 update, we have introduced our new product Qredit Valkyrie.
Qredit Valkyrie was supposed to go through a beta-phase in March which didn’t happen. Later it was rescheduled for the month of June, which we unfortunately had to postpone again.
We have added a few extra features and deliverables to Qredit Valkyrie that were planned to be released this month. The goal was to deploy an astronomical balloon with a node that communicates with satellites and demonstrate the use-cases of the Qredit Valkyrie Deployer.
Another launch for the astronomical balloon is planned later in the month of July. After a successful launch, we are going to release the product with all the details and publish the endless possibilities with Qredit Valkyrie.
You are probably wondering what Qredit Valkyrie has to do with deploying weather balloons? As explained above about our potential customers using QAE-2 for communicating with satellites.
It would require us to deploy a node in space. Before we can do this, we need to verify and test that our network runs strong and secure in space or in high altitude with nodes on the ground and guarantee that latency with relay nodes in space is not a problem.
— The sky is no longer the limit.
Once we are able to deploy an astronomical balloon, we will give Qredit Valkyrie users the option to deploy their own blockchain in space. Obviously also allowing Qredit Valkyrie users to deploy their own blockchain on the ground.
In what phase of development is Qredit Valkyrie right now?
The front-end part is almost ready. We are currently working on the updates together with a Qredit community member named ‘GEOPS’ to integrate the scripts with our hosting partner to automatically deploy nodes on virtual servers. The same scripts will also allow users to create the blockchain, portals/wallets and explorer all at once and optionally apply for listing on the Altilly Exchange.
The public release date for Qredit Valkyrie is now planned for the end of August with all the features available to everyone.
What else have we done so far?
We have created a DPOS community forum for delegates from all DPOS projects, including Ark, Lisk, and Ki.
Delegates can post their proposal for the Qredit blockchain, for other DPOS projects, but also for future projects that are going to use the Qredit Valkyrie Deployer.
— You can visit the forum by clicking on this link: https://dpos.community
Anything else in the pipeline?
Since 25 June 2019, we have acquired a local shop in the city of Sollefteå in Sweden.
The shop is called McBläck and focuses on refilling ink cartridges and toners for consumers and companies as well as on offering basic IT services. The company has existed for 11 years before we acquired it. We are going to rebrand it without changing the name.
Besides the usual services that the company provides, we are going to add additional services. The reason for randomly acquiring a shop is straightforward. In the past, Qredit has been mainly focusing on being a payments system for merchants and consumers. One of the ways of demonstrating a product is by using it.
With McBläck we are going to further develop and demonstrate Qredit Wave and Qredit Motion, using it first in our own store and improve the functions step by step.
To be a large player in the world of payments providers, we need to make sure that our product is perfect right from the start. Meanwhile, we are going to introduce QAE-1 in our own store and create tokens in the form of bonus points to reward customers. While doing this, we are also going to provide the same services to other companies in the city and make sure they adopt the product and build their own tokens to reward customers.
Finally making the actual use-case of Qredit planned in early 2018 comes true. McBläck being a company that provides printing services when local companies adopt the rewards system, we can offer them customized Qredit NFC cards and print them in our own shop.
What else is coming?
Sweden is quickly becoming a cashless society. The majority of the people in this country no longer use cash to make transactions and some stores no longer accept cash. Unfortunately, the current systems of digital payments are focused almost exclusively on serving people who live in Sweden.
By using services like our smartbridge field and services that verify phone numbers, we can connect the Qredit address to a cell phone number and allow users to receive Qredit and directly convert it to fiat currency using Qredit Motion. This would be an invaluable service for people who do not have a Swedish bank account and are slowly becoming locked out of Swedish society. Making it possible for end-users to send transactions to a readable address or a contact in their cell phone is a necessary step to an inclusive digital society and could be further complemented by our focus on NFC smartphone technology.
We are starting investigations into possible partnership opportunities that would compliment this goal and speed up adoption within Sweden.
So far about Qredit, we are going to continue with Altilly.
Altilly has been under construction for the last 2 months and all extra services like advertising, airdrop programs and exchange listings have been disabled.
The reason for this is because we have been working a lot on the backend to increase the user-friendliness and the simplicity of the exchange. Altilly will have a completely new look and feel.
The services will be reactivated again on July 10th.
New features will be introduced soon. One of them being the AltillyPas (formerly Qredit KYC).
The AltillyPass is a physical card that you can order and receive by optionally applying for KYC on the exchange.
The AltillyPass will give you access to new features like:
- Access to Trollbox
- Increase the daily withdrawal limit
- Receive payments directly on the exchange using the physical AltillyPass
(The physical AltillyPass stores your exchange public addresses without the private keys. This will allow you to receive payments from users with NFC enabled cryptocurrency wallets. Wherever you go. You will always be able to receive payments in your wallet without login into your Altilly account).
- Access to community events like coin-votings and competitions
- Access to airdrops from developers
- Verified member status
- Lower trading fees
- Access to future marketplace (replacement of Bitilly Marketplace)
- Access to future mining pools
- Possibility to withdraw mining pool rewards directly to the exchange with conversion options
- Verify all your exchange wallet addresses.
What does this mean?
By applying and successfully verifying your KYC application, we can approve all your exchange wallet addresses. Third parties using our tools can query an address from any type of coin and check if the address has been KYC verified by a real person without leaking sensitive information, government documents or names to other parties.
Once this feature has been applied, we will do our best to work with trusted brokers that convert Bitcoin or other cryptocurrencies to fiat currency and vice versa. This will make future withdrawals to fiat currency easier for 3rd parties and you no longer have to upload your passport with other parties that we work with. Additionally users of the Qredit Blockchain will see a ‘verified’ logo on the Qredit Explorer for verified exchange wallet addresses.
Other exchange developers can request API access to do the same for their explorer or wallet services.
Hodler Energy is our FPGA mining project using immersion cooling technology.
As mentioned in the Q1 update, our goal was to move to Sweden and start our mining operation in Ludvika. A lot has changed and within 3 months we have completely migrated our company from the Netherlands to Sweden.
Ludvika is no longer an option and our company with the mining project is now established in Betåsen (northern part of Sweden). We have acquired two locations in Betåsen, Söderfors 103 (Site A) and Söderfors 113 (Site B).
We have chosen this location for specific reasons. Sweden is known for having clearly defined tax rules and regulations on cryptocurrency and mining. This gives us the possibility to further expand our business related to blockchain technology without any difficult restrictions like in the Netherlands.
The ‘village’ where Hodler Energy is operational has about 17 residents, it’s practically in the middle of nowhere. The facilities are directly located between 2 large hydro plants (Kilforsen & Lasele, visible on google maps) that guarantees the stability of the electrical grid and the affordable electric price.
Site A is already operational with 45% of the ICO funds and 100% next week (225 000 dollars). Since the last update, we have compensated for 2 payouts. You can view these payout reports by clicking on the following link: https://hodler.enterprises/project/hodler-energy/
In total there will be 36 FPGA cards running with the ICO funds and a little extra will be added to compensate for the delays from 2018.
Within 6 weeks from now, the electrical grid will be upgraded by the company named EON which allows Site A to use 375 amps on 400 volts (360–516 FPGA cards depending on the algorithm).
Site B will be operational in February 2020 with at least 1125 amps. Which gives us the possibility to run 1080–1548 FPGA cards.
Our goal is still to utilize the heat of the miners. We have started building a 52m3 pool with water to cool down the miners using heat exchangers. This process is already functioning.
The next step after adding more miners is to utilize the heat further and routing it to the houses in the village connected to the central heating system. Residents in the village can benefit from free heat during the cold winters.
Unlike most mining companies, Hodler Energy is using green energy and is running without large fans, complex air conditioning systems and dry coolers, while utilizing all of the heat using only hydro pumps. The proven concept will eventually be presented to established companies with server farms in Sweden.
What else is coming for Hodler Energy?
FPGA mining is for some people still in an early phase. The amount of pools allowing FPGA miners to use their services is quite small. We are going to fix this problem and meanwhile take advantage of this struggle.
Hodler Energy is going to build a mining dashboard on the Altilly Exchange for the Hodler Energy investors to watch and interact with their tokens and payouts. Meanwhile, we are going to provide several FPGA mining pools where we will charge zero fees to those that receive payouts directly to their Altilly account. Profitable assets for FPGA mining will also be freely listed on the Altilly Exchange.
Pictures, video and other media content from the Hodler Energy project will be published soon in our Hodler Enterprises discord server: https://hodler.enterprises/go/discord
If you are a Hodler Energy investor or if you hold any tokens, please contact us. We have a private telegram group with all Hodler Energy participants without spammers or scammers joining the channel.
…Last but not least… Antares Energy
Antares Energy is a project that we have started recently.
To maximize the output of Hodler Energy, we are going to build resources for renewable energy. This allows us to pay electric to investors that have invested in, for example, solar panels and meanwhile further decrease the electric price for Hodler Energy participants. Creating a win-win situation for both parties and reducing the costs of tax on electric and power lines.
Antares Energy will be created on the Qredit blockchain using the QAE-1 protocol.
While being in talks with several parties and private investors, we have decided to create a proposal for the failing project named SolarDAO. You can read this proposal in the SolarDAO telegram group: https://t.me/solardao.
SolarDAO investors can swap their current SDAO assets on the Ethereum blockchain for Antares Energy tokens on the Qredit blockchain.
The official swap will occur at the end of July after the release of QAE-1. Current SolarDAO investors are advised to store their SDAO tokens on the Altilly Exchange before the 21st of July to participate in the swap. For every 206 SDAO tokens, you will receive 1 Antares Energy token that allows you to receive monthly rewards. Noticeable progress with this project will be made in early 2020.
So far we would like to apologize for the missed deadlines from the Q1 update. In the future, we will do our best to stick to the announced timeframes.
We hope you enjoyed reading this long update. A new update will be published right after the release of QAE-1.
Thank you for your time!
We would also like to thank all delegates, community members, the Ark team and of course our own core team members and especially the advisors of our company for being dynamic, supportive and for guiding our projects in the positive direction.
— Nayiem Willems — CEO of Hodler Enterprises